Jonathan Debono, Ta' Xbiex
Car registration tax
I would like to clarify a point regarding my letter published on April 24. The current situation already permits that cars manufactured prior to 1971 pay half the annual road licence fee.
In fact in my letter I had written: "It is a very positive step, that ADT charges half the licence fee for cars manufactured before 1971." What I wanted to emphasise is that, what would be the use of such a system when the proposal now is that old cars be penalised for their exhaust emissions.
This would be a contradiction, when compared to the way the car licence system operates in England, where old cars are totally exempted from paying a licence fee.
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Albert Bezzina
Apr 28th 2008, 15:17
To maintain the polluter pays principle, a restriction on the mileage of collectable or vintage vehicles is used to distinguish from old day to day use of old vehicles not particularly classified as 'collectable'
Vehicles which are over 25 but less than 39 years old could qualify as ‘vintage or historic vehicle status’ or as a 'collectable vehicle' when less than 25 years old if; (i) biennial assessment by officials of the ADT (the Malta Transport Authority) on the request of the owner of the vehicle and on payment of a fee, it is confirmed that the vehicle in a well-cared-for state and in good general condition and meets certain ‘vintage-car-friendly’ VRT standards, (ii) restricted mileage controlled by biannual odometer readings, the owner permanently loosing such tax benefits if odometer readings are manipulated (iii) the owner of the ‘vintage, historic or collectable’ categorized vehicle has a second car on which full tax is paid and is used as the main means of personal transport. (iv) For social reasons; the person owns only one vehicle that is over 25 years old and that this vehicle can be classified as a vintage car (with tax rebates) if it fulfils criteria ‘i.’ above, and that owner is over 60 to 65 years old, a pensioner or has been registered as a disabled person or having a disabled person in the household.
Vintage vehicles (25 to 39 years old) and collectable vehicles so classified should pay less overall annual taxation since they are not used on a day-to-day basis. They also enhance the local tourist product when these vehicles are out on the road. They will still be subject to an eco-contribution penalty if the engine runs ‘dirty’.
Vintage or historic vehicles over 40 years old should pay no annual tax whatsoever if they fulfil the criteria mentioned in ‘(i)’ but certification by the ADT and VRT may be carried out every four or five years after the 40th year test.